System and method for transferring items with restricted transferability

ABSTRACT

The invention is systems and methods for transferring items with restricted transferability. Initially, the systems and methods wait for a first consumer to make a request to transfer an item after having purchased the item from a provider. The systems and methods then send a request to transfer the item to the provider. This request may indicate inducements to the provider to authorize the transfer. If the transfer is authorized, the systems and methods then present information regarding the item to other consumers. This information may be presented as part of a bidding interface or as part of an advertising interface. Once the second consumer submits a winning bid for the item when the information is presented in a bidding interface, or an acceptable offer when the information is presented in an advertising interface, the transfer of the item can then be completed with or without the assistance of an intermediary. When the transfer is completed without the assistance of an intermediary, the first and second consumer may directly transfer the item and payment to each other. When the transfer is completed with the assistance of an intermediary, the first consumer may send the item to the intermediary and the second consumer may send payment to the intermediary. Once both the item and the payment have been received at the intermediary, the intermediary may send the item to the second consumer and all or part of the payment to the first consumer.

CROSS REFERENCE TO RELATED APPLICATIONS

The application is a continuation of U.S. patent application Ser. No.11/680,680, filed Mar. 1, 2007, entitled TRANSFERRING A TICKET by StuartA. Fraser, Philip M. Ginsberg, Glenn D. Kirwin, and Howard W. Lutnick(now U.S. Pat. No. 8,645,218), which is a continuation of U.S. patentapplication Ser. No. 09/670,900, filed Sep. 28, 2000, entitled SYSTEMSAND METHODS FOR TRANSFERRING ITEMS WITH RESTRICTED TRANSFERABILITY byStuart A. Fraser, Philip M. Ginsberg, Glenn D. Kirwin, and Howard W.Lutnick (now U.S. Pat. No. 7,574,375), which claims the benefit of U.S.provisional application Ser. No. 60/156,474, filed Sep. 28, 1999,entitled SYSTEMS AND METHODS FOR TRANSFERRING ITEMS WITH RESTRICTEDTRANSFERABILITY by Stuart A. Fraser, Philip M. Ginsberg, Glenn D.Kirwin, and Howard W. Lutnick, each of which is hereby incorporated byreference herein in its entirety.

BACKGROUND OF THE INVENTION

The present invention is systems and methods for transferring items withrestricted transferability, such as airline tickets, concert tickets,sporting event tickets, hotel reservations, etc. More particularly, thepresent invention relates to systems and methods for enabling consumersto exchange perishable items with the assistance from the providers ofthe items.

Many popular high-cost and yet perishable items, such as airlinetickets, concert tickets, and sporting event tickets, are sold byproviders to consumers with restrictions on the transferability of thoseitems. For example, with items such as airline tickets, an airline(i.e., a provider) may sell an airline ticket to a first passenger(i.e., a consumer) twenty-one days in advance of the correspondingflight at a heavily discounted fare. In such a case, the airline wouldlikely place restrictions on the transferability of the airline ticketin order to prevent the first passenger from selling the airline ticketto a second passenger a few days before the corresponding flight at lessthan what the airline would charge the second passenger for the sameticket at that time. The airline prevents such a transfer in order toprevent the first passenger from competing with the airline for the saleof the airline ticket to the second passenger.

Such restrictions on transferability may greatly burden a consumer when,for reasons beyond the consumer's control, the consumer is forced toforgo the benefit of the perishable item. For example, a consumer whopurchased non-transferable and non-refundable airline tickets may beforced to lose the value of those tickets when the consumer is unable tomake the corresponding flight due to unforeseeable business or personalobligations, or any other suitable reason.

Accordingly, it is desirable to provide systems and methods fortransferring perishable items with restrictions on transferability.

SUMMARY OF THE INVENTION

It is therefore an object of the present invention to provide systemsand methods which allow consumers to transfer items with restrictedtransferability to other consumers.

This and other objects of the present invention are accomplished inaccordance with the principles of the invention by providing systems andmethods which enable consumers to transfer goods and services withrestricted transferability. Initially, these systems and methods waitfor a first consumer to make a request to transfer an item (such as anairline ticket) after having purchased the item (directly or indirectly)from a provider (such as an airline). Once the request is received, thesystems and methods then compose and send a request to transfer the itemto the provider. This request may indicate inducements to the providerthat will be granted in exchange for the provider authorizing atransfer. If the transfer is authorized, the systems and methods thenpresent information regarding the item to other consumers, including asecond consumer. This information may be presented as part of a biddinginterface or as part of an advertising interface. Once the secondconsumer submits a winning bid for the item when the information ispresented in a bidding interface, or an acceptable offer when theinformation is presented in an advertising interface, the transfer ofthe item can then be completed with or without the assistance of anintermediary (that may also be a provider of the systems and methods ofthe present invention). When the transfer is completed without theassistance of an intermediary, the first and second consumer maydirectly transfer the item and payment to each other. When the transferis completed with the assistance of an intermediary, the first consumermay send the item to the intermediary and the second consumer may sendpayment to the intermediary. Once both the item and the payment havebeen received at the intermediary, the intermediary may send the item tothe second consumer and all of the payment (or part of the payment whencommission payments are made) to the first consumer.

Although the present invention is illustrated in connection with airlinetickets, the invention is equally applicable to other types of items,such as concert tickets, sporting event tickets, option contract rights,systems for which a non-refundable deposit has been paid (e.g., hotelrooms, car rentals, and restaurant reservations), etc.

BRIEF DESCRIPTION OF THE DRAWINGS

Further features of the invention, its nature and numerous advantageswill be more apparent from the following detailed description of thepreferred embodiments, taken in conjunction with the accompanyingdrawings, in which like reference characters refer to like partsthroughout, and in which:

FIG. 1 is a transaction flow diagram of one embodiment of the systemsand methods of the present invention;

FIG. 2 is a flow diagram of a process for contacting a provider andproviding notification to a consumer in accordance with one embodimentof the present invention;

FIG. 3 is a flow diagram of a process for trading and transferring anitem between consumers in accordance with one embodiment of the presentinvention; and

FIG. 4 is a block diagram of one embodiment of hardware that may be usedto implement the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The present invention is now described in connection with FIGS. 1-4.

Turning first to FIG. 1, an example of a transaction flow 1 of oneembodiment of the systems and methods of the present invention isillustrated. As shown, a first consumer 3 may purchase an item at steps6 and 7 by, for example, providing a provider 4 with a payment (step 6)and provider 4 providing first consumer 3 with an item (e.g., goods orservices) (step 7). At any point after first consumer 3 purchases theitem at steps 6 and 7, first consumer 3 may submit a request at step 8to a transfer system 2 to transfer the item.

When a transfer is requested, system 2 may prompt first consumer 3 forthe desired conditions for the transfer. For example, system 2 mayprompt first consumer 3 as to whether first consumer 3 would like toauction the item or simply post an advertisement for the item. System 2may also prompt first consumer 3 for additional selling information,such as a minimum sale price for the item, or any other suitableinformation, or any combination thereof. Alternatively, this informationmay be submitted as part of the request.

Transfer system 2 may then request that provider 4 authorize a transferof the item at step 9. System 2 may also ask provider 4 to verify thatfirst consumer 3 is in fact in possession of the item.

When requesting authorization at step 9, system 2 may indicate aninducement to provider 4 that may be granted in exchange for theprovider granting authorization to transfer the item. For example, aflat fee (such as $50) may be paid to the provider system in order torelease the restriction on transferability. As another example, apercentage fee (such as 10% of the transfer price) may be paid to theprovider system. As yet another example, the fee paid may be higher whenthe provider system is also trying to sell similar items to otherconsumers (e.g., when a corresponding flight is not sold out) and lowerotherwise. As still another example, the provider system may placeadditional restrictions on the transfer, such as a minimum transferprice, a maximum number of items that may be sold, or any other suitablerestriction, or any suitable combination thereof. As a further example,the provider system may be given the option of buying back the item atan agreed upon price. Any other suitable approach may also be used. Atstep 10, system 2 may then receive an authorization or denial for thetransfer. This authorization or denial may then be communicated to firstconsumer 3 at step 11.

Referring to FIG. 2, an example of a process 20 for performing steps8-11 of FIG. 1 is illustrated. As shown in FIG. 2, an interface may bepresented at step 22 to consumer 3 that allows the consumer to create aconsumer profile. The interface may, for example, prompt the consumerfor his/her full name, address(es), telephone number(s), e-mailaddress(es), credit card information, and any other information suitablefor use by transfer system 2. This profile may then be stored in adatabase in system 2.

Upon creating the profile, consumer 3 may then request to transfer anitem with restricted transferability at step 23. The consumer mayrequest to transfer the item by auctioning or posting an advertisementfor the item. Once consumer 3 has requested to transfer the item, system2 may contact provider 4 to request authorization to transfer the itemat step 24. System 2 may use information in the consumer profile inrequesting authorization. System 2 may also verify with provider 4 thatconsumer 3 is in fact in possession of the item. For example, system 2may query provider 4 for information on whether consumer 3 possesses theitem. Alternatively, system 2 may request that consumer 3 provide anyadditional information on the item, such as a serial number, to verifypossession.

In response to the request made at step 24, provider 4 may authorize ordeny the requested transfer at step 25. This authorization or denial maybe provided via e-mail, telephone, printed mail, or any other suitablemethod. At step 26, when an authorization is granted, provider 4 may addany additional restrictions on transfer of the item, such as a minimumtransfer price, a maximum number of items, additional contract terms, orany other suitable restriction, or any suitable combination thereof.Finally, at step 27, system 2 may then notify consumer 3 whether therequested transfer was authorized and what additional restrictions, ifany, have been imposed. The system may, for example, relay theprovider's decision to the consumer by sending an e-mail, pop-upmessage, printed message (which is mailed to the consumer), or any othersuitable printed or electronic notification.

Turning back to FIG. 1, if the request to transfer the item isauthorized, system 2 may then present information to consumers,including a second consumer 5, at step 12. Information may be providedin the form of an advertisement or as part of an auction system. Inresponse to this information, a second consumer 5 may indicate awillingness to receive the item via an auction or in response to aposted advertisement, for example. Once a second consumer 5 has beenfound, the participation of system 2 in the transfer may be complete andconsumers 3 and 5 may close the transfer through steps 14 and 15. Asillustrated, closing the sale may include second consumer 5 sendingmoney to first consumer 3 at step 15 and first consumer 3 sending theitem to second consumer 5 at step 14.

Alternatively, system 2 may assist in closing the transfer on behalf ofconsumers 3 and 5. For example, system 2 may notify provider 4 of thetransfer so that the provider 4 may void-out the item possessed by firstconsumer 3, and issue a new item to second consumer 5. As anotherexample, system 2 may instruct second consumer 5 to send a payment tosystem 2 at step 17 and instruct first consumer 3 to send the item tosystem 2 at step 16, after which system 2 will send the payment to firstconsumer 3 at step 18 and the item to second consumer 5 at step 19. Inthis capacity, system 2 may act as an intermediary or may use anexternal intermediary.

System 2 may charge a service fee for providing this service. This feemay be paid by first consumer 3, second consumer 5, and/or provider 4.The fee may be subtracted from the payment made at step 17, for example.Alternatively, a payment could be made from first consumer 3 at the timeof submitting the request at step 8.

In order to verify the authenticity of first consumer 3 and secondconsumer 5, and to insure performance of their obligations, eachconsumer may be prompted by system 2 to enter suitable information suchas a name, an address, a telephone number, a credit card number, asocial security number, or any other suitable information, or anycombination thereof, at any time.

Turning to FIG. 3, an example of a process 30 for performing steps 12-15of FIG. 1 is illustrated. As shown at step 31, system 2 may retrieverequest information regarding transferring of the item that waspreviously submitted by first consumer 3 (e.g., asking price, itemdescription, bidding duration, whether to auction or advertise the item,etc.). In one suitable approach, first consumer 3 may decide to post anadvertisement and accept the first bid when, for example, the consumerpossesses an item which expires in a few days. In another suitableapproach, the consumer may decide to auction an item when, for example,the consumer desires to obtain the best possible offer gained throughbidding competition.

At step 32, system 2 uses this information to determine whether firstconsumer 3 wants to advertise or auction the item. When the consumerdesires to auction the item, the system may add the item to a biddinginterface at step 33. At step 34, second consumer 5 may be presentedwith this interface in order to enable that consumer to place a bid onthe item. This interface preferably facilitates the consumer inputtingbidding information at step 35. Bidding information may include theconsumer's name, billing address, shipping address, bid, and/or anyother suitable information. At step 36, the system may then determine ifthe auctioning period is over. If the auctioning period is not over,process 30 may loop back to step 34 and allow additional bids to beplaced. In this example, system 2 will provide the item to the consumerwith the best bid placed at step 34 prior to the end of a biddingperiod. The bidding period may be determined by consumer 3 or system 2and may be for some period of time after a first bid is received oruntil at least one bid is received after at least a minimum period oftime.

If it is determined at step 32 that consumer 3 decided to post anadvertisement at step 32, however, system 2 may then add the item to anadvertising interface at step 37. Second consumer 5 may be presentedwith this interface in order to facilitate offering to buy the item atstep 38. When second consumer 5 offers to buy the item, system 2 mayprovide a notification to first consumer 3 at step 39. For example,system 2 may provide the item to second consumer 5 when his offermatches the criteria of the request information. For example, the givenoffer must be greater than or equal to an asking price.

Once system 2 has received an acceptable offer at step 39 or after theauctioning period has lapsed at step 36, system 2 may provide consumers3 and 5 with options relating to transferring the item at step 40. Forexample, the system may allow each consumer to send their respectiveitem or payment to system 2. In this approach, system 2 preferablyhandles the processing and may charge each consumer with a handling fee.In another suitable approach, system 2 may allow consumers 3 and 5 tosend the item and payment directly to each other without interventionfrom system 2. Yet another suitable approach, system 2 may notifyprovider 4 of a transfer between consumers 3 and 5. In such a case,system 2 may require provider 4, for example, to reissue tickets,reservations, or any other item to second consumer 5, and void theoriginal item. Provider 4 may request additional information from eachconsumer 3 and 5, such as name, address(es), phone number(s), etc., inorder to complete the transfer of items. Any other suitable approach fortransferring items may also be used.

The systems and methods of the present invention may be implementedusing any suitable communication network. One embodiment of such acommunication network 46 is shown in FIG. 4. As illustrated, transfersystem 2 may be implemented as a web site that is hosted on an Internetweb page server 41, which may be any suitable server. A provider system45, a first consumer computer 42, and a second consumer computer 44 maybe connected to Internet web page server 41, or any other suitableserver, through any suitable Internet connections 43.

Internet web page server 41 may be any server suitable for providingaccess to a web site operating as system 2. Internet web page server 41may, for example, provide one or more web pages to first consumercomputer 42 and second consumer computer 44 using one or more suitableprotocols (e.g., the HyperText Transfer Protocol (HTTP) and TransmissionControl Protocol/Internet Protocol (TCP/IP)). The server may also run adatabase engine suitable for maintaining a database of consumer and iteminformation. In practice, one or more functions of first consumercomputer 42, second consumer computer 44, and the Internet web pageserver 41 may be integrated into a single server, or may be distributedacross multiple servers.

Any suitable Internet connections 43 may be used in communicationnetwork 46 in accordance with the present invention. For example,Internet connections 43 may be comprised in whole or in part of theInternet, an intranet, a public data network, a private data network, awireless network, a cable network, any other suitable data network orcombination of networks, dial-up connections, etc.

Thus, systems and methods for transferring items with restrictedtransferability are provided. It will be understood that the foregoingis only illustrative of the principles of the invention and that variousmodifications can be made by those skilled in the art without departingfrom the scope and spirit of the invention, which is limited only by theclaims that follow.

What is claimed is:
 1. An authorization control system comprising: atransfer system operable to receive from a consumer a request to use thetransfer system to sell a ticket; a provider system operable: todetermine whether a sale of the ticket by the consumer is authorized ordenied; and to send to the transfer system an indication of whether thesale of the ticket is authorized or denied; and in which the transfersystem is further operable: to cause information regarding the ticket tobe presented to a plurality of consumers when the indication from thetransfer system indicates that the sale of the ticket is authorized; andto charge the consumer a fee to use the transfer system to sell theticket.
 2. An authorization control system comprising: a transfer systemoperable to receive from a consumer a request to use the transfer systemto sell a ticket; a provider system operable: to determine whether asale of the ticket by the consumer is authorized or denied; and to sendto the transfer system an indication of whether the sale of the ticketis authorized or denied; and in which the transfer system is furtheroperable: to cause information regarding the ticket to be presented to aplurality of consumers when the indication from the transfer systemindicates that the sale of the ticket is authorized; and to indicate aninducement to the provider system to authorize the sale of the ticket.3. An authorization control system comprising: a transfer systemoperable to receive from a consumer a request to use the transfer systemto sell a ticket; a provider system operable: to determine whether asale of the ticket by the consumer is authorized or denied; and to sendto the transfer system an indication of whether the sale of the ticketis authorized or denied; and in which the transfer system is furtheroperable to cause information regarding the ticket to be presented to aplurality of consumers when the indication from the transfer systemindicates that the sale of the ticket is authorized.